DreamHouse Realty Real Estate Glossary Alberta & Canada Updated 2026

🏡 The Ultimate Real Estate Glossary (A–Z)

The complete plain-language guide to real estate terms for buyers, sellers, investors, and landlords in Calgary, Alberta, and across Canada.

Welcome to the DreamHouse Realty Real Estate Glossary — one of the most comprehensive, up-to-date collections of real estate terminology in Alberta and across Canada. Every entry is written in clear, conversational language so it’s easy to understand whether you’re a first-time buyer, a seasoned investor, or simply asking your voice assistant “what does that mean?”

🔤 A–Z Real Estate Terms (Expanded)

A Terms

Appraisal

A professional estimate of a property’s market value, typically required by a lender before approving a mortgage.

Amortization

The total length of time it takes to fully repay a mortgage, including principal and interest — commonly 25 to 30 years in Canada.

Adjustable-Rate Mortgage (ARM)

A mortgage where the interest rate can change periodically based on market conditions.

Assessed Value

The value a municipality assigns to a property for property tax purposes, which may differ from market value.

Agreement of Purchase and Sale

The legally binding contract that sets out the price and conditions agreed to by a buyer and seller.

Assumable Mortgage

A mortgage that a buyer can take over from the seller, keeping the existing rate and terms.

As-Is Condition

A property sold in its current state, with no repairs or improvements made by the seller before closing.

Assignment

Transferring the rights and obligations of a purchase contract (often a pre-construction condo) to another buyer before closing.

Amenities

Features that add value or convenience to a property or community, such as parks, transit, schools, or a building’s gym and pool.

B Terms

Brokerage

A licensed company that employs REALTORS® and facilitates real estate transactions on behalf of clients.

Buyer’s Agent

A REALTOR® who represents the buyer’s interests throughout a purchase, from search to closing.

Bridge Financing

A short-term loan that covers the gap between buying a new home and selling your current one.

Building Code

The set of municipal and provincial regulations governing how a building must be constructed and maintained.

Backup Offer

A secondary offer that becomes active only if the primary accepted offer falls through.

Blind Bid

An offer submitted without knowing the value or terms of competing offers — common in multiple-offer situations.

Balloon Payment

A large lump-sum payment due at the end of certain loan terms, after smaller regular payments.

Building Permit

Official municipal approval required before starting most construction or major renovation work.

Buydown

Paying an upfront fee to lower a mortgage’s interest rate, either temporarily or for the full term.

C Terms

Closing

The final legal step where ownership officially transfers from seller to buyer.

Closing Costs

Fees due at closing, including legal fees, land title registration, adjustments, and insurance.

Comparative Market Analysis (CMA)

A REALTOR®’s price estimate for a property based on recent comparable sales in the area.

Condominium (Condo)

Ownership of an individual unit combined with shared ownership of common areas, managed by a condominium corporation.

Capital Gains

The taxable profit earned from selling a property for more than its purchase price (with exemptions for a principal residence).

Chattels

Movable personal property not permanently attached to a home, such as furniture or freestanding appliances.

Certificate of Title

The official land titles document confirming legal ownership of a property in Alberta’s Torrens land title system.

Conditional Offer

An offer to purchase that depends on certain conditions being met, such as financing or a home inspection.

Condominium Corporation

The legal entity responsible for managing a condo building’s common property, reserve fund, and bylaws.

Curb Appeal

The visual attractiveness of a property from the street, which influences a buyer’s first impression.

D Terms

Down Payment

The upfront portion of the purchase price paid by the buyer, with the balance financed through a mortgage.

Deposit

Good-faith money submitted with an offer to show the buyer’s serious intent to purchase.

Dual Agency

A situation where one brokerage or agent represents both the buyer and seller in the same transaction.

Default

Failing to meet the terms of a mortgage agreement, most commonly by missing payments.

Deed

A legal document transferring property ownership — in Alberta, ownership is instead recorded via Certificate of Title under the land titles system.

Debt Service Ratio (GDS/TDS)

Lender calculations comparing housing costs (GDS) and total debt (TDS) to gross income to determine mortgage affordability.

Duplex

A residential building divided into two separate living units, often under one title.

Days on Market (DOM)

The number of days a listing has been actively for sale, used as an indicator of market demand.

Disclosure Statement

A seller’s written disclosure of known property defects or issues, required in some transactions.

E Terms

Equity

The portion of your home you actually own — calculated as market value minus any outstanding mortgage balance.

Encumbrance

Any claim, lien, or restriction registered against a property that may affect its transfer or use.

Easement

A legal right allowing someone to use part of another person’s land for a specific purpose, such as utility access.

Escrow

Funds held by a neutral third party (such as a lawyer) during a transaction until conditions are fulfilled.

Exclusive Listing

A listing agreement giving one brokerage the sole right to market and sell a property.

Estoppel Certificate

A document confirming a condo’s financial and legal status, often required before purchase.

Encroachment

When a structure or improvement extends onto a neighbouring property without permission.

Effective Date

The date a contract or agreement officially becomes binding.

Environmental Assessment

A study evaluating potential environmental risks or contamination on a property, common in commercial deals.

F Terms

Freehold

Full ownership of both the land and the structure built on it, with no condominium corporation involved.

Foreclosure

A legal process where a lender repossesses a property due to non-payment of the mortgage.

Fixed-Rate Mortgage

A mortgage where the interest rate stays the same for the entire term.

Fixtures

Items permanently attached to a property, such as built-in lighting and cabinetry, which typically stay with the home.

First-Time Home Buyer

A buyer purchasing their first property, often eligible for special incentives, rebates, or savings plans.

FSBO (For Sale By Owner)

A property listed and sold directly by the owner without a listing REALTOR®.

Firm Sale

An accepted offer where all conditions have been satisfied or waived, making the sale legally binding.

Flip (Property Flipping)

Buying a property to renovate and resell quickly for a profit.

Fair Market Value

The price a property would reasonably sell for between a willing buyer and seller in the open market.

G Terms

Guarantor

A person who agrees to be responsible for a mortgage if the primary borrower defaults.

Gross Income

Total income before taxes and deductions, used by lenders to assess mortgage eligibility.

Gross Rent Multiplier

An investment metric comparing a property’s price to its gross rental income, used to gauge value.

Ground Lease

An arrangement where a tenant leases land long-term and typically owns any building constructed on it.

GST New Housing Rebate

A federal rebate that can reduce the GST payable on the purchase of a new or substantially renovated home.

Growth Corridor

A region or area experiencing significant population and development growth, often attractive to investors.

H Terms

Home Inspection

A professional evaluation of a property’s condition, systems, and structure before purchase.

Home Equity Line of Credit (HELOC)

A flexible line of credit secured against the equity in your home.

Holdback

A portion of funds withheld until specific contractual or legal conditions are met.

Hot Market

A market condition marked by high buyer demand and limited housing supply, often driving prices up.

Highest and Best Use

The most profitable and legally permissible use of a property, often used in appraisal and development analysis.

Homeowners Association / Community Association

An organization managing shared amenities and rules within a community or development.

Hold Period

The length of time an investor plans to own a property before selling.

Homestead

A property designated as an owner’s primary residence, sometimes granted certain legal protections.

I Terms

Investment Property

A property purchased primarily to generate rental income or long-term appreciation.

Interest Rate

The percentage cost of borrowing money, charged by a lender on a mortgage.

Income Property

A property that generates rental income for its owner.

Irrevocable Offer

An offer that cannot be withdrawn by the buyer until a specified expiry date or time.

Inspection Contingency

A condition allowing a buyer to withdraw from a deal based on the results of a home inspection.

Insurable Value

The cost to rebuild a property, used to determine appropriate insurance coverage.

Interim Occupancy

A period in new condo purchases when a buyer moves in and pays occupancy fees before the title officially transfers.

Inclusions

Items specifically listed in an offer as included in the sale, such as appliances or window coverings.

J Terms

Joint Tenancy

A form of co-ownership where owners hold equal shares with automatic rights of survivorship.

Just Listed

A property that has newly come onto the market for sale.

Judgment Lien

A legal claim against a property resulting from a court judgment against the owner.

Junior Mortgage

A second mortgage or loan that ranks behind the primary mortgage in repayment priority.

K Terms

Key Deposit

A refundable security deposit collected for keys or access devices, common in rental agreements.

Kick-Out Clause

A clause allowing a seller to keep marketing a property and accept a better offer under specific conditions.

Knock-Down Rebuild

Demolishing an existing home to construct a new one on the same lot.

L Terms

Lease

A legal agreement allowing a tenant to occupy a property for a set period in exchange for rent.

Legal Description

The official, formal identification of a parcel of land used in land title records.

Lien

A legal claim registered against a property as security for a debt.

Listing Agreement

A contract between a seller and a brokerage authorizing the sale of a property.

Land Transfer Tax

A tax charged on property transfers in many provinces; Alberta does not levy a provincial land transfer tax, though registration fees apply.

Loan-to-Value Ratio (LTV)

The mortgage amount expressed as a percentage of the property’s appraised value.

Life Estate

A form of ownership granting someone the right to use a property for their lifetime, after which it passes to another party.

Listing Price

The price at which a property is advertised for sale.

Lot Line

The legal boundary line separating one property from an adjoining one.

Leasehold

Ownership of a property for a fixed term under a lease, rather than owning the land outright (freehold).

M Terms

MLS®

The Multiple Listing Service® — the listing database used by REALTORS® to share and search property listings.

Mortgage

A loan secured against real property, used to finance a purchase.

Market Value

The most probable price a property would sell for under current market conditions.

Multiple Offers

A situation where two or more buyers submit competing offers on the same property.

Mortgage Broker

A licensed professional who connects borrowers with lenders and helps secure the best available mortgage terms.

Mortgage Insurance (CMHC)

Insurance required on high-ratio mortgages (down payments under 20%), protecting the lender against default.

Mortgagee / Mortgagor

The mortgagee is the lender; the mortgagor is the borrower who grants the mortgage on their property.

Move-In Ready

A property in good condition requiring no immediate repairs or renovations before occupancy.

Market Correction

A notable decline in property values following a period of rapid price growth.

N Terms

Net Proceeds

The amount a seller takes away after deducting closing costs, mortgage payout, and fees from the sale price.

Notice to Vacate

A formal legal notice requiring a tenant to move out of a rental property.

New Construction

A recently built property that has not been previously occupied.

Net Operating Income (NOI)

A property’s income after operating expenses, before mortgage payments and taxes — a key investment metric.

Notary Public

A legal professional authorized to witness signatures and certify documents in a transaction.

Non-Conforming Use

A property use that doesn’t comply with current zoning but is legally permitted because it existed before the zoning change.

Negative Amortization

A situation where mortgage payments don’t cover the interest owed, causing the loan balance to grow over time.

O Terms

Offer

A formal proposal to purchase a property under specific price and terms.

Open House

A scheduled time when a property is open for public viewing without an appointment.

Occupancy Date

The date on which a buyer or tenant is permitted to move into a property.

Option Agreement

A contract giving a buyer the right, but not the obligation, to purchase a property at a later date.

Owner Financing (Vendor Take-Back Mortgage)

An arrangement where the seller finances part or all of the purchase directly for the buyer.

Overbid

An offer submitted above the listed asking price, common in competitive markets.

Occupancy Rate

The percentage of units in a rental property that are currently occupied.

Off-Market Listing

A property for sale that isn’t publicly advertised on MLS®, often shared privately among agents or buyers.

P Terms

Pre-Approval

A lender’s conditional confirmation of how much mortgage a buyer qualifies for, based on income and credit.

Principal

The original amount borrowed on a mortgage, not including interest.

Property Tax

An annual municipal tax based on a property’s assessed value.

Power of Sale

A process where a lender sells a property directly after borrower default — the standard remedy used in Alberta instead of judicial foreclosure.

Property Management

Professional oversight of a rental property, including tenants, maintenance, and finances, on behalf of an owner.

Purchase Price

The final agreed-upon price paid for a property.

Points (Mortgage Points)

Upfront fees paid to a lender to reduce a mortgage’s interest rate.

Prepayment Penalty

A fee charged for paying off or refinancing a mortgage before the end of its term.

Q Terms

Quiet Enjoyment

A tenant’s or owner’s right to use their property without unreasonable interference or disturbance.

Qualified Buyer

A buyer who has been financially assessed and approved to purchase a property.

Quarter Section

A common land measurement in rural Alberta, equal to 160 acres — a quarter of a one-mile square section.

Quiet Title

A legal action to resolve disputes or uncertainty about who holds valid ownership of a property.

R Terms

REALTOR®

A licensed real estate professional and member of the Canadian Real Estate Association (CREA), held to a defined code of ethics.

Refinancing

Replacing an existing mortgage with a new one, often to access equity or secure better terms.

Rental Yield

The annual rental income earned on a property, expressed as a percentage of its value.

Reserve Fund

A condominium corporation’s savings account set aside for major future repairs and maintenance.

Right of First Refusal

A right giving a specific party the first opportunity to buy a property before it’s offered to others.

Real Property Report (RPR)

An Alberta-specific survey document showing a property’s boundaries and the location of structures, often required for closing.

Rent-to-Own

An agreement allowing a tenant to rent a property with the option to purchase it later, often with rent credited toward the price.

Rezoning

The process of changing a property’s zoning designation to permit a different use or development.

S Terms

Subject Conditions

Requirements that must be satisfied before an offer becomes a firm, binding sale.

Seller’s Market

A market condition with high buyer demand and low inventory, often favouring sellers.

Survey

A precise measurement of a property’s legal boundaries and features.

Strata Fees / Condo Fees

Monthly fees paid by unit owners to cover shared building expenses and reserve fund contributions.

Staging

Preparing and presenting a home to appeal to the widest range of buyers before listing.

Sale-Leaseback

An arrangement where an owner sells a property and immediately leases it back from the new owner.

Show Home

A fully finished model home used by builders to showcase floor plans and finishes to prospective buyers.

Sight Unseen Offer

An offer made on a property without the buyer having physically viewed it in person.

Sunk Cost

Money already spent on a property or deal that cannot be recovered, regardless of future decisions.

T Terms

Title

The legal record of property ownership.

Title Insurance

Insurance protecting against losses from title defects, fraud, or ownership disputes.

Tenancy Agreement

A legal contract outlining the terms of a rental arrangement between landlord and tenant.

Turnkey Property

A move-in or rent-ready property requiring no immediate work from the buyer.

Torrens System

The government-guaranteed land registration system used in Alberta, where the Certificate of Title is the definitive proof of ownership.

Transfer of Land

The legal document used to register a change of property ownership with Alberta Land Titles.

Triple Net Lease (NNN)

A commercial lease where the tenant pays property taxes, insurance, and maintenance in addition to rent.

Trustee

A person or entity holding legal title to property on behalf of another party’s benefit.

U Terms

Under Contract

A stage where an offer has been accepted but the sale is not yet finalized.

Utilities

Essential services such as water, gas, and electricity supplied to a property.

Unconditional Offer

An offer with no remaining conditions, making it immediately binding once accepted.

Underwriting

A lender’s process of evaluating a borrower’s risk before approving a mortgage.

Urban Sprawl

The outward expansion of a city into surrounding undeveloped land.

V Terms

Valuation

The process of determining a property’s current worth.

Variable Rate Mortgage

A mortgage where the interest rate fluctuates with the lender’s prime rate over the term.

Vacancy Rate

The percentage of rental units in a market or building that are currently unoccupied.

Vendor

The legal term for the seller in a real estate transaction.

Virtual Tour

A digital walkthrough of a property, allowing buyers to view it remotely online.

W Terms

Walkthrough

A final inspection by the buyer shortly before closing to confirm the property’s condition.

Warranty (New Home)

Builder-provided protection covering defects in materials and workmanship on a newly constructed home.

Withdrawn Listing

A property that has been removed from the market before selling.

Waiver

A formal decision to voluntarily give up a right or condition in a contract.

Wraparound Mortgage

A secondary financing arrangement where a new loan “wraps around” an existing mortgage still held by the seller.

X Terms

Exclusive (eXclusive Listing)

A listing where one brokerage holds the sole rights to market and sell the property.

eXp Realty Model

A cloud-based brokerage model operating without traditional physical office locations.

Y Terms

Yield

The return earned on an investment property, typically expressed as a percentage of its value.

Year-to-Date (YTD) Sales

A market performance measure totalling sales activity from the start of the calendar year to the present.

Year Built

The calendar year a property’s construction was completed, often shown on listing details.

Z Terms

Zoning

Municipal regulations that determine how land in a specific area can be used, such as residential or commercial.

Zoning Bylaw

The formal municipal law establishing zoning rules and permitted land uses.

Zero Lot Line

A property built with one wall directly on or near the property boundary line.

Zoning Variance

Permission granted to deviate from standard zoning rules for a specific property.

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